More than 3,000 vehicles were damaged in the flooding that followed heavy rains across South Korea according to a report in The Korea Times.
The report quotes an insurance industry official saying the resulting losses are estimated to be around KRW30bn ($22m). The official sources said the number is expected to rise further, as the scale of vehicle flood damage is higher than expected. The vehicle insurance loss ratios are certain to go up following these losses.
The report said according to data from the General Insurance Association of Korea till 21 July 2025 a total of 3,131 flood-damaged vehicles had been reported to 12 non-life insurance companies offering motor vehicle coverage.
The Korea Times report said the fact that the typhoon season has not even begun makes the situation all the more concerning. It said the vehicle insurance loss ratio, which has perhaps already surpassed the breakeven point of 80% is likely to rise further.
A loss ratio of 80% is generally considered breakeven and any figure above that effectively indicates operating losses.
According to Financial Supervisory Service data the Korean insurers posted a KRW9.2bn loss in their vehicle insurance sector in 2024.